COCOS trending towards support
We spent a lot of time going over COCOS-BCX last week. You can read that article HERE.
The really quick TL:DR is that COCOS has been blurring the lines between Blockchain and Software development, specifically for games and the gaming industry. Making use of blockchain and creating ways to shift in-game assets from one game to another while having the user maintain ownership is only one of their accomplishments.
We can look at COCOS as an opportunity for a longer term position as opposed to a very quick swing trade.
COCOS Price Action
On the Daily chart we can see that we are currently in the 5th day of decent after a quick single day pump. It is important to note that the low from last week was taken out and tested yesterday. Support was brief and so far today we look to be headed back to test yesterdays low.
All of this is after a huge bounce relative to the initial two-day pump. To sum up the daily – it looks like this:
2-Day Pump = 833%
2-Day Dump = -60%
2-Day Pump = 105%
3-Day Dump = -43%
1-Day Pump = 27%
Current 5-Day Peak Low = -25%
Above we can see the H4 Chart. This allows us to get a little bit more detail than the Daily Chart as we get 6 Candles for every Daily candle we can see in the previous chart.
Here we look to see what patterns, if any, arise during these bounces. We look to see how price positively or negatively reacts to levels of Support and Resistance. We do this so we can better understand how price may react in the future when given certain criteria.
For the initial Support area, there is a chance we hold the line altogether. There is a lot happening in the $2.87 area – +/- $0.10. This area has the upward sloping and horizontal Support Zones. These are both pictured. What is not pictured but still important is the Daily 20 EMA and the local 618 Fibonacci Level.
This gives 4 separate reasons and 4 different types of traders a reason to look at this area as a buying opportunity. However, that is not always the case.
We can then look all the way down to $1.87 – $1.33 as a secondary area for accumulation. This area is more tightly connected to Price Action and retesting previous areas of resistance.
Is COCOS Leading the way?
Bot NULS and GXS deserve a write-up of their own and they very well may get one eventually but today we just want to imagine the potential of these following a similar pattern of COCOS. If we study COCOS enough, then we may be able to apply similar logic as those who pumped COCOS are likely the same people responsible for pumping NULS and GXS.
So, we will look for a 2-Day Dump of about 60% and see if Support is found and watch to see if we even get a really good bounce in a few days.
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